Stock markets rise; ECB tightening already priced in. Tech stocks rebound ahead of SpaceX
As expected, Frankfurt has raised interest rates by 25 basis points, revised its GDP forecasts downwards and its inflation forecasts upwards. For the time being, the markets are ignoring Trump’s threats against Iran
by Enrico Miele and Giorgia Colucci
Le ultime da Radiocor
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(Il Sole 24 Ore Radiocor) - European stock markets are not deterred by threats from US President Donald Trump and continue to perform well, buoyed by the rebound in chip stocks on Wall Street, whilst the countdown has begun for SpaceX’s stellar IPO, scheduled for 12 June.Elon Musk’s company, valued at a staggering $1.77 trillion, is set to enter the record books for IPO fundraising. All this comes as the markets’ reaction was muted to the decision by the European Central Bank which – as expected – raised interest rates by 25 basis points, with the aim of controlling inflation. It has also cut its growth forecasts for Europe and raised its inflation forecasts.
Returning to the Middle East, the tycoon has once again stepped up his rhetoric on the conflict in Iran, announcing in a post on Truth that he intends to strike the country ‘very hard’ overnight, as well as ‘take total control” of Iran’s oil and gas industries, including the important island of Kharg, in the “not too distant future”. After a brief slowdown, European indices have picked up pace again, with Milan leading the way (FTSE MIB ).
Lagarde: inflation well above targets until the first half of 2027
“Rising energy prices will push inflation up further over the summer and keep it well above target until the first half of 2027. It will also have an impact on inflation for food, goods and services,” said ECB President Christine Lagarde at a press conference in Frankfurt. “Inflation is then expected to return to the target in the second half of 2027,” she added, “supported by falling energy prices and more moderate increases in other prices.” In any case, the war in the Middle East remains one of the main sources of uncertainty
Wall Street rises on chip recovery
Wall Street is trading higher, thanks to a rebound in semiconductor shares following recent pressure, and falling oil prices, despite fresh US strikes against Iran overnight. Micron Technology , Advanced Micro Devices and Intel are thus regaining ground. Intel shares are also rising, after Bank of America raised its rating on the stock from 'underperform' to 'buy', citing growing demand for CPUs amid increasing focus on artificial intelligence. Among other stocks, Oracle plummeted after the software giant announced plans to raise a further $20 billion in equity and debt to fund the development of artificial intelligence. However, the company reported better-than-expected results in terms of revenue and profits and has raised its adjusted profit forecast for the year.
